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Auckland Star, Volume LXXI, Issue 143, 18 June 1940, Page 8

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FINANCE LAWS. STRICTER CONTROL. COMPULSORY LOAN. PROVISION IS MADE. (By Telegraph—Parliamentary Reporter.) WELLINGTON', this day. An extension of the Finance Emergency Regulations has been gazetted. They provide for stricter control of funds, and give the Minister of Finance power to require contributions to a war purposes loan, or, in other words, pro\ide for the raising of a compulsory loan. In an explanation, the Minister, the Hon. W. Xash, said that the first four regulations were mainly in accord with provisions already operating under the regulations issued in April. They provide for restriction of the export of money and securities, and also cover the position with respect to money and securities that may be taken away by travellers. The new regulations also provide for acquisition by the Reserve Bank of all gold coin and bullion and of forei°ii currencies and securities. All dealings in foreign currencies and securities are unlawful, except with the consent of the Reserve Bank. All short-term deposits wilt be subject to control, permission being required before the deposits are accepted. Savings banks and trading banks are specially exempted. The issue of newcapital is to be controlled. Existinc bank o\crdraft rates arc- continue. The Minister is authorised to direct the use of capital for production purposes with a Government guarantee. An Emergency Finance Council will be appointed to which the. Minister mav delegate any of his powers. Mr. Xash said that the whole purpose of the regulations was to make sure of the utilisation of the Dominion's resoures for war purpose.®, and to see that they were not held up through lack of capital.